Why is your BATNA Important?

Your BATNA can help you:

• Be more flexible in considering options, and of course, choosing the right option
• Make sure that you do not make an agreement just to make an agreement

How do I come up with a BATNA?

1. Invest in a list of actions you can take if no agreement is made
2. Improve some of the more promising ideas
3. Select the one alternative that seems best to you

Remember: the more you know about the other side's BATNA, the better you will be able to negotiate and reach an agreement!

How Do I Use My BATNA?

Preparation is the single greatest determinant of success is negotiations. Very easy to skip, but don’t. Planning can turn the tables.​

​Your BATNA is your biggest source of negotiating power. What is your BATNA again? Trick question, never reveal your BATNA!​

​Here's an example of a BATNA: a candidate with a Master's Degree in Business Administration is negotiating a job offer at Coca-Cola. This person also has an offer from Pepsi for $60,000 a year with 3 weeks vacation and moving expenses. Whatever Coca-Cola offers, the candidate shouldn't accept less, because they have a better alternative at PEPSI. That better offer at Pepsi is the BATNA.​

Stay Objective

Negotiating can bring up a lot of emotions. It's important not to either over-estimate or under-estimate.

• Over-estimating your best alternative, your BATNA, shrinks the bargaining zone when it shouldn’t be shrunk.​ Sometimes, it makes sense to take that lower offer and leads people to make the error of walking away when you shouldn’t. Beware of fantasies – don’t let a good thing go!
• By under-estimating your BATNA (the best offer you think you can get), you’re likely to take an offer when you shouldn’t.

These are the first two sins of negotiations – walking away when you shouldn’t and taking a deal when you shouldn’t.​ Understanding your BATNA can help you avoid those!

​Because your BATNA is so important to your power, focus on maximizing the number and quality of your options creatively. Think about it like choosing a place to live: you might have restrictions in terms of commute time and size of rooms. Research the various alternatives for commuting by train, bus, etc. and consider remodeling more affordable houses with many small rooms by knocking down walls. Fight the urge to fall in love with one option early on. Your standards will creep up over time as you see what else is out there, so settling early isn’t fair to you, and it undermines your power.  ​

There are two general areas where you can concentrate in negotiations:

• at the table interpersonal tactics
• away from the table work on improving your BATNA